Marketing Essentials Report: Magic Hill Hotel - Analysis and Strategy

This report provides a comprehensive marketing analysis for the Magic Hill Hotel, a startup business focused on organic food and attractive interiors. It begins with an introduction to marketing and the hotel's offerings, followed by a detailed PESTLE analysis, examining political, economic, social, technological, environmental, and legal factors impacting the hotel's operations. A SWOT analysis then identifies the hotel's strengths, weaknesses, opportunities, and threats, providing insights into its competitive position. The report further explores the hotel's target market, emphasizing the importance of market segmentation. It then delves into the marketing communication mix and discusses its execution. The report concludes with a budget overview and a conclusion summarizing the key findings and recommendations. The report highlights the importance of adapting to external factors, identifying target customers, and developing effective marketing strategies for success.

Marketing essential

Table of Contents
INTRODUCTION...........................................................................................................................1
PESTLE and SWOT analysis..........................................................................................................1
PESTLE analysis: .......................................................................................................................1
SWOT analysis: ..........................................................................................................................3
Business target market ................................................................................................................5
Segment of market ......................................................................................................................6
Marketing communication mix....................................................................................................7
Execution of marketing communication mix...............................................................................9
Budget for business ...................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing can be defined as an activity and actions of promoting and selling
organizations' products and services with the help of marketing research and advertisement. This
present study is based on a new business start up with the name is magic hill hotel. It provides
organic food and beverages to its customers and have attractive interior. The main aim of this
business is to attract customers and provide them qualitative and organic food. All rooms of this
hotel includes and wardrobe, flat screen TV, a private bathroom and also a balcony with pool
view. Guests at the accommodation can enjoy a buffet breakfast. This study will show about
some internal and external factors that have impact on its performance and activities in a
negative and in a positive manner (Kotler and et.al., 2017). Segmentation and targetting also
plays an important role in marketing functions. It helps an individual and business to target their
potential customers for attracting them because it is not possible to target and reach all type of
customers. External factors includes political, economic, environmental, social, technological
and political factors that can impact on the performance of magic hill hotel in both positive and
negative manner. Further this study will show about internal and SWOT analysis that helps an
organization in identifying own strengths, weaknesses, opportunities and threats for being in a
competition and for decreasing weaknesses.
PESTLE and SWOT analysis
PESTLE analysis:
As a start up business it is important for them to identify and analyse all those external factors
that can impacts the operations and functions of their company in a negative manner. PESTLE
analysis includes political, economic, environmental, social, political and legal factors. With the
help of external analysis this magic hill hotel can make itself able to take competitive advantages
and become a sustainable business. This magic hotel provides various services and food to
travellers of a particular country. Activities of hotel industry affects travellers and tourists to the
great extent. PESTLE analysis can make magic hill hotel able to access implication of entering
new markets and to identify new opportunities (Rastogi and Trivedi, 2016).
Political factors: It includes changes in the political party. It has been analysed that hotel
industry is the government support that helps them to sustain in a competitive world. Any small
step that is taken by the government can impact on its activities and operations. For example,
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Government is supporting to this industry in order to attract a large number of tourists and for
developing a national economy. It is a big opportunity for this hotel. On the other hand it has to
face some problems like the danger of terrorism, political climate etc. Terrorists attack hotels and
tourists destinations directly that is a big threat for magic hill hotel. These terrorists attacks and
instability of politics can directly impact on the profitability and sales of this hotel.
Social: This factor includes the changes in the needs of society and people of a particular
country where this hotel operates. Health consciousness, increasing population growth rate,
social classes are some social factors that can impacts on magic hill hotel activities. It is also
being analysed that people have willingness to travel and pay more for the experience. If
manager of the hotel focus on satisfying all their needs then they can take competitive
advantages and increase their sales. On the other hand, if it does not consider on satisfying their
customers demands then it has to face several problems.
Economic: The main important factor of economic is unemployment rate that's affecting
this hotel and food industry, so it is important for manager of magic hill hotel to identify this
factor before making decisions. Food interest rates, consumer spending, income of people,
inflation economic growth, exchange rates are some economic factors that can impact on its
operations in a negative and in a positive manner (Racz and et.al., 2018). It has been analysed
that people prefer to get the best quality, and they pay for the services which they demand. They
pay more for extra services which can increase the sales of the hotel and contribute in developing
economy.
Technological: As we all know that advanced technology and technology is changing
rapidly in this particular industry. Many hotels and hospitality industries are trying to make
themselves creative and innovative in order to attract a wider range of customers. This advanced
technology can put pressure on this start up hotel to more invest on technologies. It can increase
their overall cost. On the other hand with the help of technologies and way of doing things can
provide them opportunity to make their marketing process easy and reach to their target market.
It can also provide and offers online services which can save customers' time. By creating new
apps and new machines they can cook food quickly.
Environmental: Hospitality and tourism industry is a seasonable business. Changes in
the Weather have a direct impact on the activities and profitability of this magic hill hotel. Heavy
rain, flood and storm are some climate and environmental factors. For example, in monsoon
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season there is an opportunity for this industry to earn more and attract a wider range of
customers. It is also important for hospitality industry and this hotel to more focus on becoming
sustainable and use natural resources in an effective manner. Activities of hotel can destroy
natural resources which can decrease their sales. People want to prefer to hotel that perform their
business ethically and focus on sustainability. For example, activities of hotel industry increase
greenhouse gases and also increase electricity cost that creates various health problems for the
people (Mak and Chang, 2019).
Legal: Legal factors includes equal opportunities, product safety, advertisement
standards, consumers laws and rights etc. It is very important for magic hill hotel to identify and
having the difference between the right and the wrong. If they want to trade successfully then
they require following all the laws and do all the activities legally. The current situation and war
conditions affect the law and rules of this hotel industry to the great extent. If magic hotel focus
on following all the rules and employment laws that time they can decrease and remove negative
impacts of legal factors. It can run their business smoothly.
AS a swot and internal analysis PESTLE analysis also a method which help a business in
reducing business threats. A businessman and a manager can also change the way of operating
their business with effectively. Manager can also make an effective decision by identifying all
the changes that occurs due to all external factors. There are various benefits for manager of
magic hill hotel to use and implement this analysis such as they can create an effective method to
find out new opportunities. They can also identify threats and then reduce their negative impacts.
SWOT analysis:
SWOT and internal analysis is a strategic tool that plays a critical role in identifying own
strengths, weaknesses, opportunities and threats that is related to business competition. The main
aim of SWOT analysis is to minimize threats and weaknesses and take the advantages of
opportunities that are available in tourism and hotel industry. With the help of internal and
SWOT analysis a businessman can make and develop an effective and strong business strategy
(Bowie and et.al. 2016). It is easy to apply as its does not take much time to be complete. It is an
important part of overall business planning process. There are some strengths, weaknesses,
opportunities and threats of magic hill restaurant that is described as below:
Strengths:
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Magic hill hotel is a start up business that has numerous strengths that helps them to thrive in the
market place. Some strengths of this hotel are:
 The main strength of this hotel is it provides healthy and organic food to its all customers.
 It also provides a safe place to people to stay when they are away from home as it is
located in main area.
 It has major tourists attractions that helps them in bringing people in a community.
 It also contributes to a local economy.
 The other main strength of magic hill hotel is it offers food and beverages at affordable
prices which makes it able to attract more customers.
 It uses and invests in advanced technologies that helps them in product innovation.
 It has the best interior and accommodation which attracts a wider range of customers.
Weaknesses
Weaknesses can be defined as the area where this magic hill hotel can improve upon and
need to improve for taking competitive advantages. Some weaknesses of this hotel are:
 The main weakness of this hotel is it is highly dependent on tourists that are highly
sensitive to political events.
 It also does not have skilled and experienced employees that become barriers in the path
of their success and growth (Todorova, 2015).
 It tends to be reactive in the nature instead of being proactive when it comes to corporate
social responsibilities and climate.
 Unfavourable tax rates also is a weakness as some rooms with high accommodation
attract specific taxes which are being charges per night spent there.
 It does not have adequate and proper quality control methods as per the international
standards.
 There is a seasonality of getting and availability of raw materials.
Opportunities
 At the time of peak season it has opportunity to attract domestic as well as international
tourism.
 New and advanced technologies can also give them opportunity to being innovative.
 Removal of international trade barrier is other main opportunity for magic hill hotel.
 Innovation on customers services also give them opportunity to being a market leader.
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 It has an attractive interior and well don renovation that makes it able to attract a wider
range of potential and targeted customers which can increase its sales and profitability.
Threats
 Magic hill hotel is a start up business so it has to face various problems and threats of
entrants of several international brands (Kuo and et.al., 2016)
 Rising in the pay level is also a threat for the company.
 There are various products whose demand is a seasonal in the nature.
 The other main threat which this type of industries has to face is terrorism and political
instability.
SWOT analysis helps an individual and a business to analyse and identify their weakness and
provides them opportunity to overturn them. With the help of identifying strengths it can more
increase them and then become the market leader in a particular industry.
Business target market
Target market is unit of customers or companies most likely to purchase goods and
services of firm. It means to unit of possible consumers to whom firm wants to sell their goods
and services. This unit also involves particular consumers to whom firm directs their marketing
efforts. It is the one portion of total market for products or facilities (Cvelbar, Grün and Dolnicar,
2017). In this context, Magic Hill hotel needs to identify the target market or segment that is
United Kingdom by creating marketing research or marketing plan which defines other important
factors for good, like distribution, prices and promotion efforts. Also, hotel operator need to
examine the cots of acquisition for each segments, since they will need to understand that guests
bring in most revenue for the least figure of resources. Magic Hill hotel operator's will make
guest characters utilising demographic data and spending patterns with the info plus data
generated during stay guests.
In addition to that, Magic Hill hotel operator want to target market which involves
famous destination in the United Kingdom where lots of visitors coming in a year. In this
context, Magic Hill hotel will need to determine different pricing strategies by which they offer
the products and services to the consumers (Wang and Chung, 2015). Also, hotel operator will
focus on promotional activities like advertisement, social media and digital marketing for
promoting of new hotel in the United Kingdom. For effective target consumer group, it will aid
to develop new hotel and increase its profits and sales. With the help of it, increase loyalty and
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awareness of consumer towards the hotel and its products and services. It will raise the brand
image and value within the hotel industry as compared to their hotel in the UK.
Segment of market
Market segmentation is the technique which consumer group with same wants and
common buying behaviour into segments. These sections become the basis for targeted
marketing that is more efficient strategy of marketing than advertising to the masses. The
approach of marketing segmentation is importantly consumer-focused concept than matches
goods and offering to customers curiosity (Albayrak, Caber and Bideci, 2016). Hotel revenue
management is one of the most needed element in market segmentation. It enables Magic Hill
hotel to target and market to mixture of consumers groups with various attitudes with an offer
which matches their requirement and budget level. In this context, there are different
segmentations like demographic, psychographic, behaviouristic, geographical and so on.
Therefore, Magic hill hotel will need to target different consumer group in different segments
such as:
Demographic Segments:
In this segment, Magic Hill hotel see primarily at income, occupation, socio-economic
group and family life cycle. The rest features like age, gender, religion, race etc. are not really
taken into action. This is because as Magic Hill hotel will offer premium pricing goods and
facilities which will focus on these groups and satisfy their wants can bring more profitability to
the business (Kimes, 2016). This will aid to increase number of consumer towards the Magic
Hill hotel and its products and services. By focusing on this, increase the consumer loyalty and
awareness towards the brand in hospitality industry.
Geographical Segments:
In this segment, it will be easy for Magic Hill hotel to divide the market smaller segments
because Magic Hill is small hotel which is new business in the United Kingdom. Therefore, they
will target consumers in the selected nation (Yen and Tang, 2015). This will aid to increase
number of consumer towards the Magic Hill hotel and its products and services. By focusing on
this, increase the consumer loyalty and awareness towards the brand in hospitality industry.
Psychographic Segments:
For this segment, Magic Hill will require segmenting the market which is based on
lifestyle, values and personalities of their consumers. As nature of business, Magic Hill will need
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to direct on business people and lower income people as good or facilities (Uysal, Schwartz and
Sirakaya-Turk, 2017). This will aid to increase number of consumer towards the Magic Hill hotel
and its products and services. By focusing on this, increase the consumer loyalty and awareness
towards the brand in hospitality industry.
Behaviouristic Segments:
Magic Hill hotel require dividing market depending on consumer loyalty, user status,
purchase occasion etc. and serving them with various types of services and products. For this,
Magic Hill hotel need keeping in touch with action of their consumers and their feedback on
their experience in the hotel. For instance, if the company wants to direct on buying occasion,
they can do some kind of promotion to raise the purchase occasion. This will aid to increase
number of consumer towards the Magic Hill hotel and its products and services. By focusing on
this, increase the consumer loyalty and awareness towards the brand in hospitality industry (de
Souza and Lunkes, 2015).
In addition to that, Magic Hill require targeting one or more of segments to focus. It
targets mainly at geographical and psychographic segments as for selected hotel. The prices of
services and goods of hotel are very low that displays that hotel will focus on geographic
segments. The aim of hotel is satisfied the needs of consumers by offering different kinds of less
expensive high quality services and goods. Thus, Magic Hill hotel require selecting various
strategies for marketing when choosing target marketing strategy. For effective target consumer
group, it will aid to develop new hotel and increase its profits and sales (Cvelbar, Grün and
Dolnicar, 2017). With the help of it, increase loyalty and awareness of consumer towards the
hotel and its products and services. It will raise the brand image and value within the hotel
industry as compared to their hotel in the UK.
Marketing communication mix
Marketing communication and promotional mix can be defined as a set of tool that is
being used by various business in order to interact and communicate with their target customers.
Magic hill is a new start up business and hotel that provides various facilities and services to its
customers (Köseoglu, Ross and Okumus, 2016). The main aim of this hotel is to make
sustainable business and attract wider range of customers towards their services. For making
people aware about its products and for getting them known about the importance and
specialities of their services and products it is important for them to choose the best promotional
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and communication mode. There are some elements included in marketing communication mix
that can help magic hill hotel to promote their products and communicate with their target
customers. Public relation, advertising, personal selling and direct marketing are elements of
marketing communication mix.
Advertisement: Advertisement refers to any paid promotion of products and services.
There are various companies and hotels that give advertisement in newspapers, televisions,
billboards and online. The main aim of businesses to give advertisement in newspapers and
televisions is to make people aware about their products. Online advertisement can help them out
in increasing their sales. There are various advantages of using this mode of promoting products
includes: it can increase their sales, it can enhance their brand image and goodwill. They can also
take opportunity of expanding their products in the market.
Public relations: Public relations is other main important element of marketing
communication mix. It involves building up a strong and good relationship with media and all
those people who take interest in the company. The main aim of using this element is to inform
target customers and public about their services & products. There are several organizations of
tourism and hospitality industry which take help of public relation campaigns and run through
media and press releases. It makes people aware about their services and products. In that
campaigns they also tell people about the specialities and features of their products. It can help
them in increasing their sales. Good public relation can be expensive but can also deliver a
powerful return on investment (Bruhn and Schnebelen, 2017).
Personal selling: Personal selling is other main component of communication mix. In
this type, sales professional focus on interacting and communicating their target customers as
they have a vast knowledge of their products and services. They also provide suggestions to
customers related to any type of problem and also try to solve their problems. By more focusing
on developing relationship with customers and people they increase their sales. Customers also
support them as they do mouth publicity about their products and services which increase their
brand image.
Direct marketing: There are several forms of direct marketing such as postcards,
catalogues of company's products and coupon mailers. The main aim of direct marketing is to
give a brand message to target audience. There are several companies and hotel that using this
direct and online marketing and promote their goods through Facebook, Twitter and E-mail. This
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internet marketing allow them to establish connection and make their sales process easy at
affordable prices.
Sales promotion: There are various promotional elements which companies use such as
discount coupons, sponsorship programs and product samples. It also makes companies able to
increase loyalty of customers, increase sales, improve public presence and communicate with
their target and potential customers (Kitchen and Burgmann, 2015).
Magic hill hotel use direct marketing in order to promote their services and products. For
making this more successful they take help of direct marketing campaigns ion which they get
opportunity to interact with their customers and develop a strong relationship. They can easily
target their ideal customers. Tactics of direct marketing like campaigns are very cost effective as
compare to others. They can also send specific messages to a particular group of people and
target customers based on their buying behaviours.
Execution of marketing communication mix
There are various components and methods of promoting products but magic hill hotel
use direct marketing. They implement this in their company and take various advantages. For
executing direct marketing component of communication mix it is important for them to identify
and formulate objectives and create a simple plan. After formulating objectives magic hill hotel
plan an offer and execute all activities consistently and then develop a system of tracking
marketing effectiveness.
Creating a plan: For executing and implementing any component it is important to have
a great marketing plan. In this marketing plan they require to write all activities which they will
perform further. It is not difficult and time-consuming as it helps them in guiding in a right
direction (Todorova, 2015).
Execution of activities: After making and creating a plan, this hotel execute all
marketing activities. Marketing plan help them in understanding that which activity is most
important and be helpful for them. They execute and perform all activities until they attract more
customers whom they can handle. It is not only important to make plan but also to follow that
plan for making marketing and promotional activity successful. By executing and implementing
all activities, magic hill hotel take opportunity to build a successful business.
Development of system: After performing all the activities it is important to track sales
against the activities. By asking frequent question to their customers they get to know about the
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effectiveness of their marketing activities. They can identify their weakened as well as strengthen
areas and then make improvement accordingly. IT can also identify that what is working and
what is not working as it can help them in preparing budget and take their budget decisions.
Measurement: It is the last and final activity and step of execution of direct marketing
communication. In this step, manager require taking measurements and see that how their
activities are working and beneficial for them.
There are various advantages of direct marketing which magic hill hotel use such as it
helps them in building and developing strong relationship with potential as well as existing
customers. It also improves and increase customers loyalty, when sales promotional give
informations of their products and also help them in solving their problems related to products.
This activity and way of communication is measurable as manager can easily measure their
effectiveness by tracking the success of their campaign (Valos and et.al., 2016).
Budget for business
The most essential element for business that is budget planning procedure that will be
collecting honest reviews of recently working or not working. For developing the new business,
operator will need large amount of money and funds. A luxury hotel serving to business
travellers needs various budget from hotel for middle-class tourist trade. Therefore, Magic Hill's
operator will estimate budget in relation to different ways such as marketing plan, human
resource management, designing of hotel (Wang and Chung, 2015). In this context, there are
different costs are involved staffing, food, laundry, internet operation, taxes, computers and
equipments.
Particulars Costs (£)
Staffing and human resource management £1250
Marketing Research £1500
Marketing Plan £2000
Equipments £6500
Advertisement £5500
Social Media Marketing £2500
Products and services £6500
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